Counter-terror cooperation between India and Britain besides a host of other issues figured in the parleys.
Matters relating to the Mutual Legal Assistance Treaty, strengthening of the intelligence-sharing mechanism and visa- related issues were also deliberated upon, the sources said.
61-year-old Mallya, who has been living in Britain since last year, was arrested by Scotland Yard last month on India's extradition request.
Within hours of his arrest, Mallya, who is accused of cheating and fraud, was released on bail by a London court.
The UK's Crown Prosecution Service (CPS) will argue the case on behalf of the Indian authorities when it comes before the court.
Mallya, whose now-defunct Kingfisher Airlines allegedly owes more than Rs 9,000 crore to various banks, had fled India on March 2, 2016.
India and the UK have an extradition treaty, signed in 1992, but so far only one extradition has taken place under the arrangement - that of Samirbhai Vinubhai Patel, who was sent back to India last October to face trial for his involvement in the post-Godhra riots of 2002.
However, unlike Mallya, Patel had submitted to the extradition order without legal challenge. India had given a formal extradition request for Mallya according to the extradition treaty between India and the UK through a note verbale, a diplomatic communication, on February 8.
The Union home secretary lauded the UK's effort to extradite Mallya and conveyed that New Delhi will help London to pursue the case in the UK court.
The sources said India told the UK delegation that if one-on-one contact can be established between the prosecuting agency in India and the Crown Prosecution or Department of Prosecution, then it would be faster and easier to put up evidence before the judge concerned.
India will inform the UK about the proceedings or hearings happening in the cases of wanted criminals by the UK in India and wants the UK to reciprocate in similar cases.
Both sides agreed that India and the UK will sign an MoU in July on reworking the agreement on security cooperation.
India also offered to drop cases registered against one Bangladeshi national, who is lodged in Assam, so that he can be extradited to the UK.
In return, sources said, India expects reciprocity that if people wanted by New Delhi are mired in any British case, those should be dropped and extradition facilitated.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.